>>megyn: dog behind the wheel, a group teaching dogs to drive to show how smart rescue dogs can be, they learn how to change gears. standard transmission. they are shifting gears, how to brake and steer before they graduate to a real car. next week their abilities are tested on national television. stay tuned for that. and think about adopting a pet. here is trace here for shepard smith. >>trace: the news begins anew on "studio b" today. a soldier's biggest battle is getting his daughter back. this father took that fight all the way to the supreme court. a case that observers say had the justices "very riled up." then, the mysterious guy known for security software on millions of computers has been

hiding since his neighbor turned up dead. now there are new clues about where he has been holed up. >> while you watching television, is your t watching you? a cable company is now working on a system that picks up on your gestures. even what you saying. all in the privacy of your home. that's all ahead unless breaking news changes everything. this is "studio b." first from fox at 3:00, the syrian regime is getting desperate after more than a year of deadly fighting. the military could soon turn to its dangerous chemical weapons. or lose them to other militant groups. that is the wanting today from secretary of state, hillary clinton. speaking at nato, secretary of state, hillary clinton added this time it is running out for bashar al-assad. >> we believe, as you know, that their fall is inevitable. it is a question of how many

people will die until that date occurs. >>trace: investigators say syria could have thousands of chemical agents including cyanide and the deadly nerve gas. 40,000 people have died so far in the syrian civil war. now the fighting has spilled into neighboring lebanon, a nation where tens of thousands of syrians have sought refuge. officials in a northern city reported at least six people have died and more than 50 have been wounded in two days of violence. jonathan hunt is live today at the united nations. the big question is, will president assad stay and fight? will he seek asylum? >>jonathan: the turks and russians, they are saying they are working on what they call "new ideas to bring an end to the ongoing 20--month-old civil

war." they have nut given any ideas or details what those ideas might be but it will revolve around whether president assad has decided he going to live and die in syria and die most likely at the hands of the rebels or whether he can be persuaded to say asylum but that has the u.n. secretary-general having misgivings giving a man who has murdered 40,000 of his own people to give him retirement in a safe and friendly country. >> the united nations must not allow any impunity after gross violation of human rights. he must be held accountable and brought to justice>>jonathan: tf the argument is that any kind of

solution that would persuade assad to stand down and end the slaughter of all of those syrian civilians might, actually, be worth considering. >>trace: what do we know of the reports that rebels are trying to get their act together in terms of leadership? >>jonathan: they trying to bring about some political unity. that is far easier said that done because there are so many different and disparate groups including al qaeda fighter whose have swarmed into syria and now you part of the fighting and part of the battle to oust president assad. so, it is not very easy. the next stage of trying to bring about some sort of political unity will unfold in morocco next week, the next meeting of the "friends of syria group" attended by secretary of state, hillary clinton. that is the next opportunity for the international community to

try to get a unified leadership they will be able to deal with and most importantly trust in a post assad syria. trace? >>trace: thank you from the u.n., jonathan. a soldier's fight to keep custody of his five-year-old daughter has now reached the nation's highest court. his estranged wife is from scotland. when the united states deported her last year she won the right to take their daughter to scotland under an international treaty. today, the case is before the united states supreme court in what could be a landmark ruling for military parents. now live from washington, dc. what options does the father have at this point? >>guest: not many. he lost the initial decision that sent his daughter to scotland he tried to appeal but the courts in the united states said they have no jurisdiction. she is gone. his only option is to try to fight for her in the scottish legal system. he refused to give up vowing to

get to our highest court as quickly as possible. he was there today. >> this is my little girl. when i said goodbye to her, october 12, i said i would do everything i could. today, people listened. >>guest: he had the justices' ear and he knows this goes beyond him and the impact for many of the military families. trace? >>trace: what is the mother saying? >>guest: she actually was deported from the united states after getting into legal trouble so she could not return for the arguments but her attorney says it is time to leave the little girl where she is. >> the child has to have stability. she is five. she is back in one country. the idea of making her a ping-pong ball and bringing her back to america, two or three years down the line isn't fair. >>guest: he said the international treaty of scotland and the united states that has been signed settles matters.

>>trace: how are the justices reacting? >>guest: many were skeptical abouhow this played out and the fact that the father has no right to appeal this decision. here is what john roberts said and i quote, "the incentive if you prevail, the mother, are for the parent with control over the child to leave immediately, get on the first plane out and you are home free. that seems to me to be a very unfortunate result." it could be weeks or months before we know what the court decides. trace? >>trace: thank you, shannon, in washington, dc. we have our senior judicial analyst, judge napolitano. i am fascinating by what shannon said about justice roberts saying you have the mother got on a plane and the father used the proper legal channels and now gets on a plane and now she wins. >>judge napolitano: there are a lot of factors.

this is the interpretation of an international treaty. the treaty was written to address situations like this. married couple with children who traveller a great deal. a classic case to address members of the military. married couple with children where each party to the marriage is from a different country. the other factor here, something the supreme court hates: cases involving domestic disputes, custody over children, divorce cases, none of the justices have experience with it. this is typically if state court. what the chief justices is saying is something we can all understand. the father lost at a federal trial court in atlanta before he had the opportunity toat loss te child and flew to scotland. when he filed the appeal the court said too little too late because the mother is not here and because the child's not here and because this case is controlled by an international

treaty we don't have jurisdiction. the chief justice says, well, that is not right. she shouldn't have left with the child before the appeal was filed and probably the appellate court should have heard the appeal. my guess is the supreme court today will say to the federal appeals court in atlanta, hear the appeal. decide if the trial judge was right or wrong. where is this child more accustomed to living? with his father in alabama? or with his mother in scotland? that is what the treaty tells judges they have to decide. >>trace: it comes down to where the child normally lives but the fact the girl is in scotland does that make the argument moot? >>judge napolitano: it makes the mother's case stronger because a principle having ruled on more custody cases than i would like to think, i didn't have gray hair until i got 9 custody cases, a basic principles of custody law is, you can't move the child around too much. even if the child is with the

lesser in terms of benefits for the child, of the two parents, the mere removal of the child from a parent to whom the child has grown accustomed, the mere removal of the child from the home setting to which the child is accustomed, can have an adverse psychological affect on that child. stated differently, the longer the child stays with the mother in scotland even if she is not the appropriate parent, the more difficult it is in the courts to say, bring the child back to alabama. >>trace: thank you, judge, good of you. >> after more than a week and billions lost, the strike at two of america's biggest ports is now over. the deal that got workers back on the job is next. plus, fire bombs and bullets in the country that is supposed to be keeping the israelis and be keeping the israelis and palestinians from going to war.

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>>trace: new revelations of the deadly 9/11 attack at the consulate in libya. on capitol hill lawmakers watched multiple videos of the strike. they show a crowd gathered outside and a lawmaker who asked not to be identified said and i quote, "it's amazing how casual they are, it is fought like they just stream in, they are dancing around, hanging around, they are smiling and laughing." sources tell us some people begin lotting and setting fires. others were armed. some were not. the u.s. ambassador and three other americans died in the attack. the obama administration has been under fire for saying it was a spontaneous incident linked to a protest. intelligence officials later called it a terrorist attack.

a lawmaker says there are indications several possible motivations. catherine is live on capitol hill. how are lawmakers reacting to the videos? >> a lawmaker telling fox after the brief that it was frustrating, it was tough to watch the videos because whether you call the consulate a diplomatic facility, or you call it something else, it is u.s. sovereign territory. when the terrorists or the mob gathered outside the consulate, some of them were armed, some not, there was no resistance. there was a small arms fire. they walked into the consulate grounds. lawmakers say the video show how some of them left with clothing or electronics and others torched the facility leading to the deaths from what we know of the united states ambassador. a was striking today is that a republican who is on the house of representatives intelligence committee telling fox there is so much confusion three months

after the attack and that if his mine raises even more questions about why the obama administration was so singular in its focus on the anti-islam video. >> this isn't a black and white issue. there is a lot moving parts here and the investigation continues so bear with us so we get it right. they focused in on the muslim video and that didn't make sense to me. that is when people get frustrated. >>reporter: others indicated there were real questions about the motivation, whether it was tied to the symbolic date of 9/11 anniversary or somehow still linked to the anti-islam video or whether it was inspired by the demonstrations early in the day in cairo. >>trace: what are we learning of the decision to close the annex? >>reporter: follow has learned the decision to close the c.i.a.

annex, the c.i.a. operation in benghazi, was made early morning hours of september 12 about eight or nine hours after the first wave of the attacks hit the night before. fox was told the c.i.a. site was sanitized so that all of the classified material, the classified equipment, was either destroyed or removed in a 12-hour window and we asked the lawmakers about this. they have not wanted to discuss it on camera but they are indicating this shows you where a lot of the focus was in those hours after the attack, very much on the annex and c.i.a. operation. >>trace: thank you, catherine, from capitol hill. the sea port strike that cost southern californian estimated $1 billion a day is over. workers at the ports of los angeles and long beach walked off the job a week ago and many cargo ships had to change course or simply line up until the

ports re-open. for retailers this could not have come as a worse time because they rely on this sea port for a holiday good like clothing and if unture and electronics. both now have struck a deal. adam is like at the port of los angeles. >>reporter: what a difference a day makes. yesterday and for the seven previous days, it was quiet around here and you did not see semis driving in and out but i see semis going in both directions. you could hear a horn from a ship or a train as activity is back to normal. what made them come do an agreement was a lot of pressure from the outside, a federal mediator showed up and was only here for an hour and a half before the deal was announced. both sides are happy. >> we will get the ships moving and get cargo moved throughout the show chain and get everyone the christmas presents they are looking for. >> the employers recognize the

critical impact of the port, to the nation. we are delighted the terminals will be operating again. >>reporter: everyone is back to work here. they ramped it up first thing this morning. >>trace: we talked of the $1 billion a day. do we know how much damage this did to the economy? >>reporter: some of the damage never will be truly known because of the small businesses affected, the drivers that would have been here and stopped for lunch or breakfast and the drive across country would have stopped. there are some ships here but there are docks not totally full and a lot of empty ships, and they will be loaded today. a lot of them have been unloaded. the mayor here says no matter what happened, this was expense i. >> this cost the country about $8 billion, somewhere in the neighborhood $8 billion and 10,000 people were out of work

but we shot a deal. people are going back to work. that is the good news. >>reporter: the big stores in the larger locations could get stuff late you forget there are a lot of smaller people, the guys at the smaller produce market would may have lost money. their stuff was sitting offshore or waiting to be loaded on and sat here for eight days. >>trace: thank you, adam. the millionaire software company founder wanted for questioning in a murder is now showing his face again. john mcafee has shown up in guatemala. he has plenty to say about the investigation. i was 21, so i said, "hmm, i want to retire at 55." and before you know it, i'm 58 years old. time went by very fast.

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>>trace: millionaire software company founder has turned up after weeks on the run. mcafee is behind the computer antivirus program of the same name, and he is a "person of interest" in the killing of a neighbor in the central american nation of belize but he sneaked out to neighboring guatemala and claims the belize government has been harassing him. >> they have attempted to charge me with every crime from running a laboratory without a license to hiring security guards without a license, to having improper paperwork for my company and most recently the murder of my neighbor. >>trace: the neighbor complains about his dogs and then turned up dead shortly after somebody poisoned the dogs. mcafee says he is seeking political asylum in guatemala and can prove the belize government is corrupt. now a contributing editor for

"travel and leisure." i am not sure peopled that why he is seeking asylum in guatemala because he wasn't brought up on charges in belize, why move next door? >>guest: well, it is strange and bizarre story from the beginning. he never was charged formally in belize. he is a "person of interest" only. i talked to the belize police and they confirmed under their law they can detain him for questioning for up to 48 hours so there was reason for him to be on the lam. he carried out being on the lam in an unusual way talking to the press and inviting reporters with him. he made the mistake of inviting reporters who posted an iphone picture to their blog and it contained data showing where he was. so this is why we know he is in guatamala because of a slip-up from reporters. >>trace: but the belize police say we don't have the resources to chase this guy. he is not a suspect but a "person of interest" and if you

have all the different disguises and hiding in shelters and he seems to be running from no one. >>guest: you wonder, is he really on the lam or is this a creation of his imagination? there was a murder of, someone murdered his neighbor and he has been on the run ever since and the belease police say they will announce in the next day what they intend to do they have worked with guatamala in the past, the police forces conduct joint exercises together. it is not cheer that he is in a better position now than he was when he was in belize. >>trace: because he said all along the belize police are corrupt, right, and the belize police work hand in hand with the police in guatemala so he is not in better shape? >>guest: people do not consider belize particularly corrupt, but i don't know if guatemala is considered better. >>trace: from outside looking in, do you believe they will go after this guy in you have been?

>>guest: listen, one rule of thumb when it comes to covering mcafee do not believe anything you hear. double check everything. he is retracting always, for instance, when the news broke of the photograph, he immediately came out on his blog and said, i faked that data. then, he said, no, he did not fake the data. so, he says publicly that he will is a press conference tomorrow. the guatemala police could hold him for up to 48 hours and gun him over to belease at will, so, i question whether that will happen. >>trace: we will find out. jeff, good of you, sir. >>guest: my pleasure. >>trace: there is breaking news and new violence in egypt today. protests rocked the regime of the new president soon after his sudden power grab. now there is word that some of his top advisors have quit. there also are reports that someone set the muslim brotherhood party office on

fire. we are live in cairo coming up. plus, big developments in the case of the mom who police say pulled her cancer stricken daughter right out of the hospital. now the girl's father reportedly says she has left the country. that is coming up.

>>trace: this is "studio b" and time for the top of the news. there is breaking news now in

egypt. state-run tv is reporting that witnesses say masked men set fire to the headquarters of the muslim brotherhood in eastern egypt. the controversial president morsi was the leaders of that group before he resigned after winning the election. two weeks ago, the new president made himself a dictator, giving himself absolute power and tensions is been on the rise ever since. hours ago president morsi asking protesters out his palace to "cool it." give a chance to new talks aimed at stemming backlash over his controversial power grab. so far the call for calm has gone nowhere. you can see the protesters tearing down the tents throwing rocks and fire bombs at each other and yesterday opponents

stormed the palace grounds. the president's backers in the muslim brotherhood showed up in force and ready for a fight. this began when egypt's new president essentially maim himself a stickator, with the protesters demanding he give up those near absolute powers. and steve harrigan is live for us in cairo. steve, these are the biggest crowds we have seen yet. >>reporter: the largest crowds and the most violent. it has calmed down in the last hour at 10:00 p.m. in egypt but the worst clashes in two weeks of protests here. it wasn't police versus the protester but civilian on civilian, members of the muslim brotherhood who support president morsi and those who want to drive him from office and all the conflict happening outside the presidential palace that began with pushing and sticks and rocks and molotov cocktails and shots fired.

showing how bitterly the country is divided. >>trace: what do we know what is behind the violence? >>reporter: the first two weeks, antimorsi protesters met in that sure square and now they are marching on the palace. there has been a lost restraint on of the pro morsi supporters which restrain was broken after the man on the palace where the wall were written on with graffiti. they moved in with sticks, rocks and later gun battles in exactly what followed after that. >>trace: thank you in late evening in cairo. thank you. as we reported earlier this hour the situation in syria has become increasingly unstable. today, secretary of state, hillary clinton, warned that the syrian regime could still tap into the stockpile of chemical weapons. if not, those agents could, instead, fall into the hands of

local militant groups. the united states and nato have warned they will take action if syria uses those deadly weapons on its own people but officials are not getting into any specifics here. former state department undersecretary joins us currently professor of the practice of diplomacy and international politics at harvard's kennedy school of government. sir, it is good to see you. what does this do talking about the fighting spilling into lebanon, what does it do to regional stability? >>guest: well, syria is centrally located in the heart of the arab world. should this civil war go on much longer, it could very well fundamentally have a negative impact on both lebanon and jordan as well as iraq. what happens there has tremendous regional consequences. what we see happening on the streets is the rebel armies are making significant advances in aleppo and damascus. they are fighting very close to

the stronghold of president assad and he is using significant force including air power and artillery against civilian neighborhoods. it is bloody and tragic. now we have a report that the syrian government may be deciding what to do with chemical weapons the you can see the very swift warnings by president obama and by secretary clinton. >>trace: people do not understand when you talk about lebanon you are talking about a country that is evenly divided between those who support assad and those who support the opposition so if this goes bad in syria, it could go really bad in lebanon. >>guest: it could. we all know the hit of lebanon. what a tragic troubled history the last 30 to 23 years. they just now have had a period of quiet. they could be destabilized again, so it means really it is in the interests of the united states and of other countries to

see as quick an end to the civil war as possible. that would, a for the united states recognizing the syrian opposition, the national council and argue for the united states doing more to try to help the rebel alliance, it would argue for us working with turkey as nato decided to do today, led by the united states to say we will put patriot missile batteries into turkey and i don't know if we seeing the end of the syrian war but we could be entering a phase of dynamic change and i don't think assad can hold on too much longer. >>trace: are you saying that lebanon, really, is versus sentible to being sucked into this whole thing? >>guest: well, it is. syria has played a major role, almost always unhelpful, always unhelpful, the last 30 years, and syria occupied lebanon for self decades and, of course, some of the sectarian problems in syria may very well rollover

the border to lebanon. i would not exclude jordan from this. jordan is in a weak state much the king has been under challenge. he is a friend of the united states. they are susceptible to turbulence from syria. >>trace: former state department under secretary, nicholas burns. >> the fiscal cliff crisis and president obama saying it could all be over in a week if republicans would get on board with his plan. of course, republicans argue he is the one refusing to budge. jut more bickering as we get closer and closer to a potential economic disaster. by now you likely know that the fiscal cliff is a series of spending cuts and expiring tax credits set to take effect in 27 days. today the president made the case to a group of top business leaders. his plan calls for a higher tax rate on earned income exceeding $250,000 and republicans say that would be a job killer. though are pushing for raise revenue by closing tax loopholes and deductions, something that

the president says would not raise enough cash. wendell is live with more on the white house. how much much revenue would the president's plan raise by raising the tax rates for high earners? >> about $1 trillion the next 10 years from the rate increase. that is just part of a package that also includes limits on deductions and tax credits and aims to pull in a total of $1.6 trillion. republicans want to keep tax rates the same b end deductions and loopholes but obama says that will not get the job done. >> it is not possible to raise the amount of revenue required for a balance the package if all you rely on is closing deductions and loopholes. let me amend that. it is possible to do theoretically but it is not practical or wise as a practical

many. >>reporter: ending the mortgage deduction would hammer middle class and the charity deduction being ended would hamper universities and colleges. >>trace: when republicans say the higher tax rates will hurt small business? >>reporter: and that, cost jobs. the white house says only the top 2 percent or 3 percent of small businesses are affected republicans say those are the ones that create the vast majority of the jobs. speaker boehner suggests that capping deductions would actually protect the middle class. >> we have to cut spending and put revenues on the table. now, the revenues will come from, guess who? the rip. there are ways to limit deductions, close loopholes and have the same people pay more of their money to the federal government without raising tax rates which we believe will harm

our economy. >>reporter: the taxes will go up for those making moreover than $250,000 even if congress does nothing and also forren else but the polls suggest that the american will blame republicans. >>trace: thousands of workers are being laid off at a citigroup, slashing 11,000 jobs adding up to about 4 percent of the entire workforce. it is another cost-cutting move as banks continue to struggle after the recession in 2008 the citigroup nearly collapsed and took $2 billion in loops from taxpayers to stay afloat. investors welcomed the news on wall street. you can seat huge jump at the start of the day and citigroup stock has been climbing ever since. >> president obama will soon ask congress for tens of billions to help super storm sandy victims.

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warning once before. >> extreme weather alert and the latest storm to drench the west coast is still dumping rain across northern california. the system is slowly moving inland but not fast enough for folks who have seen 2 feet of rain in the past week. 9 storm soaked ground is giving way creating sinkholes and it caused tires, rather, trees to topple and the tires of the car cars, as well, into the homes. what is the latest from the weather center? >> a mess. but it will change. look at the storm totals across california: the mountain regions close to 2' of rain including washington and oregon where they got over a foot of rain. a lot of rain if a short period of time so flooding potential. look at the radar we have a cold front across the east we will

talk about in a second but the west is going to clear out. we just have moisture moving into central california and the northwest is still going to remain unsettled for the next several days but things are going to dry out as we get into the weekend and early next week. trace? >>trace: that snow is good news for the mountains. i heard shepard talking about june-like weather on the east coast and i now see he is bundled up, jonathan is, at the u.n. >> it is feeling more like december. we have felt warmer-than-average temperatures for two-thirds of the country. houston, texas, breaking a record yesterday of 83 degrees. delaware, georgetown, 73. flint michigan, 65 degrees, all going do come to an end. we have a pattern shift on the way. all of the cold air has been bottled up across canada but a dip in the jet stream and the cold air is going to spill southward so temperatures in the 20's and 30's tonight and into

the weekend as things start to change and it feels more seasonal. trace? >>trace: back to normal, good to see you. >> president obama is preparing to ask congress for additional emergency aid money for victims of super storm sandy. the final price tag is $50 billion. that is according to multiple sources in washington, dc but the states hardest hit asked for more, new york, new jersey and connecticut have asked for $82 billion in aid as lawmakers debate spending cuts linked to the upcoming fiscal cliff. the deadly storm destroyed or otherwise damaged hundreds of thousands of homes and businesses knocking out power to millions of people along the northeast coast. be careful what you say in front your television because one day soon it could be listening. a new system is in the works that could target commercials

just for you. based on what you say. or how you act in the privacy of your own home.

>>trace: your television could be watching you one day. the major cable provider has filed for a pat than does that, a set 207 box that you can use or pick up on your gestures while you were watching television. it could listen in on your conversations. the whole idea is to taylor commercials specifically for whoever is watching. for example, if the box hears you arguing with your spouse an advertisement for marriage counseling could pop up. we have seen proposals like this before and it raises big

concerns from privacy advocates. today a company spokesman says and i quote, "vie drop has a well established track record of respecting their customers' privacy and protecting their personal information. some patent filing by innovators are routine." and now, a c.e.o. of a firm that is called connects to the case, thank you for joining us. if you are arguing with your spouse, and an verify tiesment for counseling could pop up but if you are snuggling an advertising for contraception could come up, that is intrusive. >>guest: i would get sick of the marriage counseling ads at my house. that is all i hear. look, here is the problem. it is all about advertising. i was on talking about the electronic communications and privacy act. the biggest stakeholders in this

are not just advertisers but the government. if you think of this, i look at it from my farmer -- former background, if i can pick up on key words you say i don't have to build it, i don't build the telephone system or the internet but just have input with a court order i can listen in. not saying that is how it is going but once that is there, you have the ability to do that. >>trace: they know if you are exercising, eating, singing, laughing. this is something where you have to opt in, but sometimes they put this in the small print and sometimes they sell it to you as a brand new feature so this is going to be in a lot more house homes than people realize, right? >>guest: there is an old joke only a lawyer can write a 100 page document and call it a "brief." i am not a lawyer and do not understand what is in the fine print of these, but buyer beware. you have to know what you are

getting into and one thing, my biggest concern, i have young, my children are grown but when they were young, would i want them listening in on someone who is 12 or 13 or younger? where do we draw the line? >>trace: my question, if verizon can watch you, maybe someone else can watch you, when you get someone else that can hack into that. >>guest: anything invented by man can be compromised by man. look at microsoft and their connect box. it looks at gestures and motions and there is a youtube video of people dancing in front of a coke machine. it is already this. this is nothing new. google and comcast have filed similar things. now things are so interconnected it is a problem. >>trace: thank you, sir. controversial video shot in a los angeles firehouse, the same firehouse that got mixed up with a porn shoot. next. ays a key role throughout our livesiv es.

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>>trace: the same los angeles fire station where an adult video was filmed last year at the center of another controversy, a new video shows a woman dressed up in fire gear with little clothing dancing with a hoop. the fire department professional standards division is investigating and after we learned of the porn shoot the fire chief acknowledged that he had posed for racy photos at the station way back when he was just a captain. >> before we wrap it up "studio b," a brand new perfume, pizza hut has a perfume in canada. the bosses say the publicity stunt started as a gag early this year and they asked customs what a pizza perfume would smell like and they got a huge response so they decided to make the perfume for real. but it is a